Bharat Petroleum Corporation (BPCL) advanced 6.4 per cent in the previous week outperforming the BSE 100 index, which fell 4.5 per cent. Since its February trough of Rs 530, the stock has been on a medium-term uptrend. The stock's recent surge has helped it to decisively penetrate its 21-day moving average and its intermediate-term resistance at about Rs 670.

The stock is trading way above its 50 and 200-day moving averages. There is an increase in volumes over the past four trading sessions. Current uptrend has retraced 61.8 per cent Fibonacci retracement level of its previous downtrend that started from its September 2010 peak of Rs 814. Nevertheless, the stock is testing a key resistance band between Rs 700 and Rs 710. Strong breakthrough of this resistance zone can lift the stock higher to Rs 750 and then to Rs 780 in the medium-term.

On the other hand, inability to surpass the resistance can pull the stock down to Rs 670, which is its immediate support and then to Rs 650. Decisive weekly close below Rs 620 will mar the medium-term uptrend and pull the stock down to Rs 580.

Bharat Forge (Rs 278.7)

The stock nosedived 15.3 per cent last week after testing its resistance at around Rs 340. It has conclusively broken through its key long-term support at Rs 300. The stock's steep fall has reinforced its intermediate-term downtrend that has been in place from its December 2010 high of Rs 412. Medium and short-term trends are also down for the stock. Both the daily and weekly indicators of the stock are featuring in the bearish territory indicating downward momentum.

In the medium-term, the stock can continue its downtrend and test support level positioned at Rs 260. Conclusive fall below Rs 260 will pull the stock down to Rs 240 and then to Rs 220. Significant resistances for the medium-term are at Rs 300, 320 and Rs 340.

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